Apple forms 'mobile download alliance'

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Apple Computer has allied with Motorola and Cingular Wireless to
provide a mobile telephone that, essentially, doubles as an iPod
music player, an industry analyst says.

"You are marrying the most successful music player with a cell
phone," Ovum analyst Roger Entner said. "Apple has become, here
again, an agent of change."

The firms have mated the popular iTunes service with Motorola
hardware and Cingular's cellular network to to provide a mobile
telephone with the capabilities of an iPod shuffle, Entner
said.

"Now, you have a choice between talking to your spouse on the
phone or listening to music," Entner said with a chuckle. "What are
you going to do?"

The development is likely to frustrate recording industry
companies that have complained Apple is charging too little for
music available on iTunes, according to Entner.

"They are basically scorching the earth for the record labels,"
Entner said of the alliance, which is expected to be formally
announced by Apple boss Steve Jobs in San Francisco next week. "The
biggest loser is the music industry."

Apple makes songs available for online download at iTunes for a
price of 99 US cents ($A1.32) each. Record labels have been
pressuring Apple to use a sliding scale that charges less for
vintage tunes and more for trendy new music.